CAFC Says CIT Erred in Dismissing Customs Penalty Suit Due to Statute of Limitations Waiver

The Court of Appeals for the Federal Circuit in an Aug. 3 opinion reversed the Court of International Trade's decision tossing a $5.7 million customs penalty suit from the U.S. against importer Katana Racing for lack of jurisdiction. The trade court said Katana properly revoked a statute of limitations waiver, making the government's suit untimely. However, Judges Sharon Prost, Alvin Schall and Todd Hughes said the statute of limitations "is not a jurisdictional time limit" and instead provides an "affirmative defense" that can be waived. While the appellate court said CIT erred in tossing the suit for lack of jurisdiction, Katana is still free to claim that its statute of limitations waiver was void as part of an affirmative defense.